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Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.)
Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 830 7,580 140 Finishing in Welding Inspecting Rework Overhead Cost $ 453,500 301,600 229,500 $ 984,609 $ 181,300 234,000 61,000 $ 476,300 $ 134,500 32,150 60,360 $ 227,010 Welding hours Number of inspections Rework orders 0 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 510 5,100 5,100 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 1,600 415 490 2,280 Model 212 3,400 2,900 415 335 5,300 70 60 170 120 340 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 per machine hour 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $210 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 0 Model 145 Model 212 3. If the market price for Model 145 is $754 and the market price for Model 212 is $440, determine the profit or loss per unit for each model. Model 145 Model 212 Market priceStep by Step Solution
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